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Greg Hicks

HOW TOMANAGE yourSMALL BUSINESS

From the editorPeter M. Bakker Peter M. Bakker agency, Inc.

contributing authors

other sources

executive staff

Insurance InforMatIonInstItuteIII.org

Peter M. Bakker agency, Inc.

ted BakerexecutIve edItoradvanced autoMatIon

BenjaMIn allowayassIstant edItoradvanced autoMatIon

sarah scottdesIgner

evolve & adaptThe new world of insurance

Drive through restaurants, automated banking, and online service agents: It seems that today

everyone wants things on their schedule, and right now. People assume insurance should be the same way. The problem is that insurance is different, regardless of what commercials tell us.

Insurance is not a commodity like TV’s or cars or computers. It is not something that can be bought

or sold casually or without planning. Why? A wrong insurance decision can affect the lives of the individual, their family, their future and their business. We can always correct a wrong purchase decision by buying another product. But what happens when the wrong insurance decision results in a child not being able to go to college, or a family losing their house, or an employee losing their job. There is a lot at stake.

Personally, I like the ability to call the garage that I use and tell them what I need done on my car. It seems like I should be able to do the same thing when I need to make changes to my insurance. The difference is that my insurance policy is a legal contract. Imagine calling an attorney and asking them to make a change to your will. They are going to need some type of verification, both for their protection and yours.

The problem is that for decades this is the way people have handled their insurance. On a cocktail napkin or by a phone call. But this was before the evolution of the litigious society that we live in. This was before 9/11 and having to take our shoes off before boarding an airplane. The sad, unfortunate truth is that the world has changed and our ways of doing business have changed along with them. Do we like it? No. Must we adapt to it? Yes.

So please understand when we ask more questions than other agents. Or when we ask you to submit your requests through our secure website or in writing. All of these things are for your protection and are a part of the world we live in.

Ted BakerExecutive Editor

contentsIssue 2 March 2012

P. 20

P. 09

P. 17

P. 19

What is covered by a Basic Auto Policy?

Do I need Business Interruption Insurance?

Small Business Insurance Basics

Should I purchase an Umbrella Liability Policy?

Insurance

P. 21

P. 23

Medicare 2012

Safety Tips for Students Abroad

Lifestyle

P. 03

P. 05

P. 07

Teen Tips on Encouraging Driver Safety

Financial Planning Helps Manage Student Debt

Fire Safety Room by Room

Family

P. 13

P. 15

Wireless Technology Helps Improve Healthcare

How to manage Small Business Computer Security

Technology

P. 11

P. 25

Keep your Mental Edge as you age

Stress Busters

Health

departments on the cover

15

Feature

17

Feature

03

All too often, news headlines tell of another teen killed in a car crash. It is estimated that 35 percent of teen casualties

are due to vehicular driving accidents, making it the leading cause of death among teenagers in the U.S., according to the National Highway Traffic Safety Administration.

Through their participation in a high school program called Proj-

teen tipsect Ignition, thousands of young people have stood up to this sta-tistic and worked tirelessly to change the driving behaviors of their peers and broader communities.

If you have a teen driver in your family who you want to help become safer on the road, here are some tips from students in Project Ignition:

Teens Offer Parenting Tips that Encourage Teen Driver Safety

1 Open the lines of communicationTalk with your teen about distracted driving. Make sure you both understand what things are dangerous distractions. Listen to your teen. Ask about what it’s like being in the car with other teens, and what distractions there are to handle.

2 Offer SupportEncourage your teen to use his or her voice. Role-play with your teen so that he can become comfortable saying things like, “We both want to live, so let me answer your phone or text while you drive.” Help your teen get involved with programs at school like Project Ignition, so that she can be a positive example and make an impact.

3 Set RulesSet family ground rules for texting and calling while driving. Your teen needs to know you have high expectations, and what the consequences will be if the rules aren’t followed. Know where your teen is going, who he will be with, and what time he is expected home.

4 Be a positive exampleModel the behavior you want your teen to exhibit. If the phone rings while you’re driving, don’t answer it. Encourage your teen to answer your phone or text, al-lowing you to drive more safely. Speak up about distracted driving to your friends and peers in front of your teen driver. Help set an example, spread the word and save lives.

Additional information can be found at www.sfprojectignition.com

Project IgnItIonA service-learning program coordinated by the National Youth Leadership Council and funded by State Farm, makes grants available to public high schools in the U.S. and Canada.

The program provides young people the opportunity and tools necessary to take the lead in addressing teen driver safety issues in their communities by linking public service to academic cur-riculum.

How It worksTwenty-five schools will be chosen to receive $2,000 grants to support the implementation of teen driver safety awareness and engagement campaigns.

Ten of these 25 schools will be given $5,000 to sponsor their par-ticipation in a significant national conference or event. They will also be given the opportunity to receive an additional $2,500 to go deeper with their campaigns during the 2012-2013 school year.

In an increasingly competitive global market, educa-tion is becoming more important. But many families

find the cost of education to be outside their grasp. Ac-cording to a study commissioned by the US Depart-ment of Education, from the 2001-02 to the 2010-11 academic year, the cost of attending a 4-year undergrad-uate in-state school rose by 47.3 percent.

With ever-increasing education expenses, many fami-lies are accumulating significant debt, putting students further behind. However, with planning and financial management, students can control their finances. Here are some tips for parents of soon-to-be college students. Start the conversation. Talk with other parents, teachers and guidance counselors about the cost of education. Make contact with the student financial aid offices of the colleges on your child’s list and get an accurate esti-mate of the cost of each institute. Most importantly, talk with your child. It is imperative your child learns the budgeting process as they will soon be managing their finances away from home.

SeT THe budgeT and STIck To ITOnce you have a set budget, add wiggle room for other unforeseeable expenses. Make sure you set this budget realistically. Calculating the cost of pens and pencils may seem ludicrous, but if you’re on a tight budget, ev-ery expense counts.

geT connecTedTracking your financial spending is easier than ever. From smart phone apps to free financial planning soft-ware, you can get an accurate financial report at any time. Research banks to determine which ones offer services to help you can stay on top of your budget. Also, consider linking your banking account with your child’s, to easily transfer funds online.

Make a pLanWhen taking on debt, it is important to have a plan for paying it off. Calculate the monthly payments and time it will take your child to pay off the debt. Research salary ranges for the field in which your child plans to

Financial Planning Helps Manage student debt

pursue a career to understand the debt they can realis-tically carry. Find more information and calculators to help determine payment schedules and interest rates at www.direct.ed.gov.

do your reSearcHBefore taking out a student loan, look to other options, such as financial aid and scholarships. While some scholarships are awarded on academic merit, others are given based upon both academic performance and community service. ForestersTM, a life insurance pro-vider committed to the well-being of families and their communities, is one organization that provides a com-petitive scholarship program1 open to eligible members or their dependent children, including grandchildren, worth up to $8,000.

Recipients can use the scholarship to attend accredited universities, colleges and vocational schools, as long as they are pursuing their first post-secondary degree or

diploma. There are up to 350 Foresters Competitive Scholarships available, in the US and Canada includ-ing five Ken Peterson Awards for Community Service. These awards are worth up to $11,000.

Learn more about the scholarship opportunities award-ed by Foresters at www.foresters.com/membership/scholarships.asp.

ForesterstM is the trade name and a trademark of The Independent order of Foresters, 789 Don Mills road, to-ronto, canada M3c 1t9; its subsidiaries are licensed to use this mark.

1This program is administered by International scholarship and tuition services, Inc. only eligible Foresters members and their families can apply for these scholarships. Foresters member benefits are non-contractual, subject to eligibility requirements and limitations and may be changed or can-celled without notice. For details, visit www.foresters.com.

Enjoy the wind on your face...

Set sail without worry, knowing you’re covered in case the unforeseen happens,

whether at the dock or on the water. Call us today for a quick and easy quote.

Home fires may seem like the kind of event that happens to someone else, but the reality is, it

could easily happen to you.

Approximately every three hours a home fire death occurs somewhere in the nation, according to the International Association of Fire Chiefs (IAFC). Take action now to make sure your home is safer, and that your family knows what to do in case a fire does break out.

bedrooMSThe peak time for home fire fatalities is between 10 p.m. and 6 a.m., when most families are asleep. • Do not trap electrical cords against walls. Heat

can build up, posing a fire hazard.• Use only lab-approved electric blankets and

warmers. Make sure cords are not worn or com-ing apart. Do not leave electric blankets switched on all night unless they are marked “suitable for all night use.”

• Keep bedding, curtains and other combustible items at least three feet away from space heaters.

• Never smoke in bed.• Replace mattresses made before the 2007 Feder-

al Mattress Flammability Standard. By law, mat-tresses made since then are required to be safer.

• Have a working smoke alarm in every bedroom and outside each sleeping area.

LIvIng rooM • Do not overload electrical outlets.• Never run electrical cords under carpets.• Check all electrical cords for fraying or other

signs of damage.• Only light decorative candles when adults are in

the room. Use stable candle holders that will not catch fire. Blow candles out when you leave.

• During a power failure, do not use candles or oil lamps for light. Keep battery operated flashlights

Fire SaFetyRoom by Room

and lanterns in easily accessible places. Candles used for light in the absence of electrical power cause one-third of fatal home candle fires.

• Make sure you have a working smoke alarm in each room, including the living room.

kITcHenCooking equipment is the leading cause of report-ed home fires and home fire injuries in the United States, according to the U.S. Fire Administration. • Never use extension cords to plug in cooking ap-

pliances. They can overload the circuit and start a fire.

• Stay in the kitchen when you are frying, grilling, or broiling food. If you leave the kitchen for even a short period of time, turn off the stove.

• Keep anything that can catch fire away from the cooktop. This includes potholders, oven mitts, wooden utensils, paper or plastic bags, food packaging, towels and curtains.

• Keep the cooktop, burners and oven clean.• Loose clothing can dangle onto stove burners

and catch fire. Wear short, close-fitting clothing or tightly rolled sleeves when cooking.

Daylight saving time ends Sunday, Nov. 6, 2011 and marks the 24th anniversary of the Change Your Clock Change Your Battery® program, created by Energizer and the International Association of Fire Chiefs (IAFC). This program reminds people to check and change the batteries in their smoke alarms and carbon monoxide detectors during the fall time change.

For more tips, visit www.energizer.com.

Information sourced from the International Asso-ciation of Fire Chiefs, The Home Safety Council, and the U.S. Fire Administration.

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most

people would never consider opening a business with-out buying insurance to cover damage due to fire and windstorms. But too many small businessowners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption cov-erage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competi-tors. A quick resumption of business after a disaster is essential.

1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your fi-nancial records, had the disaster not occurred. The policy also covers operating expenses, like electric-ity, that continue even though business activities have come to a temporary halt.

Do i neeD business interruption insurance?

2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.

3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

extra exPense InsuranceExtra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period.

Usually, extra expenses will be paid if they help to de-crease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interrup-tion insurance.

If you’ve ever walked into a room to look for some-thing but forgot what you were looking for, you’re

familiar with the feelings of forgetfulness and frustra-tion. Unless you take immediate action, these feelings may worsen each year. There are easy lifestyle choices you can make every day to sustain your mental edge as you age.

Cognitive decline, including memory loss, is one of the top fears among people over the age of 55. More than half of baby boomers fear the loss of mental capacity, and 41 percent are afraid their brain fitness has de-creased in the past 10 years, according to a 2010 report in Today’s Dietitian. “New research shows that by changing our lifestyle hab-its we can help grow key parts of our brains, resulting in better memory, improved learning speed and mental agility,” said Majid Fotuhi M.D., Ph.D., chairman of the Neurology Institute for Brain Health and Fitness in Baltimore.

gIve your braIn a pHySIcaL workouT Exercise helps maintain a healthy body and brain. Re-search has found associations between physical activity and reduced risk of cognitive decline. Give your body and brain a workout by engaging in physical activities such as yoga, walking and weight lift-ing, at least 30 minutes every day. It helps keep choles-terol levels in check, maintains good blood flow and en-courages the growth of new brain cells and connections.

nourISH your MIndHelp protect your brain cells from memory loss by following a diet that includes foods rich in good fats such as DHA, a major structural fat accounting for up to 97 percent of the omega-3 fats in the brain. DHA intake has been associated with a decreased risk of mental decline associated with aging. The body doesn’t make DHA on its own, so you need to consume DHA though food or supplements.

keepyourMentaledge as youAge

“The more omega-3 fat you eat, the more it is incor-porated into brain cells, the more flexible your brain cell membranes become, the better you think, the more you remember and the happier you are,” said Elizabeth Somer, M.A., registered dietitian and author of “Eat Your Way to Happiness.”

You can find DHA in certain foods, but another easy way to get it is by taking a daily DHA supplement like BrainStrong Adult, which contains 900 mg per serv-ing of life’sDHA, which is clinically shown to improve memory in adults over 55, according to a study pub-lished in Alzheimer’s & Dementia: The Journal of the Alzheimer’s Association.

acTIvaTe your MInd THrougH MenTaL STIMuLaTIonDevelop a “use it or lose it” philosophy when it comes to your brain. Studies have shown that brain cells, much like muscle cells, can grow bigger and stronger with cognitive challenges and stimulation. Pursuing educa-tion, learning a new language, reading, working cross-

word puzzles and even playing board games are fun ways to exercise your mind. Keep your brain active by engaging in brain-boosting activities you enjoy. Com-mit to learning something new each month.

STay SocIaLLy connecTedFriends and family are often the key to happiness, and they just may be the key to brain health as well. So-cial interaction not only makes your life more fun and meaningful, but it also stimulates and protects your brain.

Stay connected with others by being part of an in-per-son interaction, whether it’s in the workplace, a card club, a network of friends or a religious congregation. Seek out friends and family for emotional support to help manage stress and stay happy. Put your passions into action by volunteering for a cause you feel passion-ate about. By giving your brain a little more attention, you’ll not only lead a fuller life, but you’ll also be helping to keep your mental edge. For more about brain health, visit www.BrainStrongDHA.com.

Every hour

of every day,

Americans

are hard at work

Mainstreet business owners like you are the lifeblood of America. Our economy

depends on you and your success. That’s why we partner with businesses just like

you to make certain you stay strong in these tough economic times. Find out the

difference an involved insurance professional can make.

Regardless of age, sex, ethnicity, race, education or location, the number of Americans who are obese,

diabetic or suffer from heart and other chronic diseases continues to rise. But new technology is helping to im-prove patient wellbeing.

By using mobile health products and services, such as those offered by mHealth, the wireless industry is dramatically reforming healthcare via the three pillars of reformation: improving access and quality of care while decreasing costs. According to CTIA-The Wire-less Association’s semi-annual survey, there are more wireless devices (322.9 million) than Americans (315.5 million), so it makes sense to connect health and wire-less technology.

wIreLeSS HeaLTH TecHnoLogy IS eFFIcIenTWhen doctors monitor their patients remotely, patients save time and money by cutting down on in-office doc-

tor’s appointments. If there are irregularities with the patient’s health, doctors are made aware via wireless monitoring, and can properly address the matter by alerting their patient to visit the emergency room, or prescribe medication.

In a field in which every second counts, doctors can improve care by receiving real-time delivery of medical tests and other vital information. With these tech in-novations, patients can be prompted by text message to check their glucose level or take their blood pressure. Remote monitoring also means medical professionals can detect health problems such as cardiac arrhythmias.

wIreLeSS HeaLTHcare beneFITS For paTIenTSA recent CTIA and Harris survey found that physi-cians believe more than one quarter of their patients would benefit from wireless services. In addition, 80 percent of doctors and 89 percent of specialists said

Wireless Technology Helps iMprove HealtHcare

they want to see continued investment in mHealth as wireless technology is able to improve and promote better healthcare.

Wireless medical devices are especially beneficial for people in rural and remote areas who do not typically have readily available access to the best healthcare pro-fessionals. Regardless of one’s location, mHealth solu-tions eliminate inconsistency in healthcare by offering patients the opportunity to receive the best access and care.

Currently, there are more than 17,000 mobile apps available for consumers to track weight-loss, exercise and fitness progress or to help manage chronic disease. For example, some apps help diabetics record their dai-ly blood sugar levels. If the levels entered are harmful or dangerous, a text message alerts users with suggested steps and tips to prevent the condition from getting worse.

Expecting and new mothers can receive free weekly text messages via text4baby. These messages coincide with the baby’s due date or date of birth. Started in February 2010, and led by National Healthy Moth-ers Healthy Babies Coalition, text4baby has sent more than 250,000 medically underserved people health tips.

wIreLeSS HeaLTHcare predIcTIonSAccording to international consulting and marketing firm Global Partners Inc., it is projected that 60 mil-lion people will benefit from using tools like remote patient monitoring devices by 2013 to prolong and im-prove their health.

The U.S. currently spends more than any other indus-trialized country in the world on healthcare, approxi-mately $2.2 trillion every year, but mHealth solutions could help save as much as $21.1 billion per year.

Thanks to the proliferation of mobile products and services, ease-of-use and continued innovation by the wireless industry, mHealth can dramatically revolution-ize our healthcare system. But in order for mHealth to make a significant impact, the wireless industry needs more spectrum. It fuels the wireless industry so we can meet consumers’ demands for everything from access-ing the mobile Internet to powering mHealth solu-tions.

To learn more about the future of mHealth and the wireless industry’s need for more spectrum, please visit: www.ctia.org/advocacy/policy_topics/topic.cfm/TID/59.

Don’t take risks with your lifestyleCall today for your Free Protection Review.

It only takes a few minutes and you can rest

easy knowing you’re covered.

Life has enough risks.

Your lifestyle shouldn’t be one of them.

We’re in the business of Protecting what’s most important to you.

It’s often said that small busi-nesses are the backbone of the

American economy, and it could likewise be said that technology is the backbone of any small business – especially “micro small business-es,” which typically have only 1 to 10 computers. According to a recent survey of small business owners by Norton, nearly one in three respondents (28 percent) identified technology as one of their top business priorities, even ahead of reducing labor costs.

Perhaps it’s eye-opening then that almost six out of ten small busi-ness owners (59 percent) admitted to having experienced some sort of malware (malicious software on their computer) in the past three years, and half of them (51 percent) had to pay an expert to resolve the problem.

So if you’re a small business owner, here are some Internet security tips to help keep your business running smoothly.

wI-FI SecurITyPublic Wi-Fi connections are ev-erywhere, but their security may be inadequate. Internet hotspots can be a virtual goldmine for cyber vil-lains looking to steal your personal information and drain your bank accounts.

TIpS• Change your network configu-

ration to manually select each wireless network it joins.

• Turn off file sharing while at a hotspot.

• Avoid banking, stock trading, or conducting other sensitive online financial transactions.

pHISHIng aTTackSPhishing masquerades as a legiti-mate email or website that requests personally identifiable informa-tion, like bank account informa-tion. When this information is entered, cybercriminals collect the data and either use it for their own purposes or sell it on the under-ground market.

TIpS• Know the online policies of

your online account provider. Banks, credit providers and other services will never ask you to confirm your personal details via email.

• Make sure the URL of the site

linked in the message matches the name of the company it purports to be from. For ex-ample, “AcmeMetroBank.com” is not the same as “my.acme.metro.bank.com.”

• Never click on a link within an email, IM or social networking site. Instead, type the address into your browser.

FIrewaLLA firewall is a software or hardware program that provides a first line of defense preventing unauthorized users from accessing your comput-er or network. Without one, your computer is exposed to any com-puter connected to the Internet, which can invite malware, hackers and other unwanted intrusions.

TIpIt is never necessary to disable your firewall when performing a down-load, install, or other online trans-action.

Choose a modern firewall from a trusted vendor such as Norton that automatically allows access to le-gitimate applications, while block-ing everything else.

“The pressures facing small busi-nesses are huge – taxes, payroll, hiring, marketing, just to name a few,” said Krysten Thompson, di-rector of business development at Norton (smallbusiness.norton.com), a maker of leading consumer Internet security products. “When it comes to technology that sup-ports critical business operations, easy-to-use security software from companies such as Norton by Sy-mantec is the way to go because they allow business owners to set it and forget it.”

computersecurity

Protect your growing

business when expertise is not on your side

how tomanage your small

business

Insurers often combine a number of insurance cover-ages into a package that is sold as a single contract.

The most common policy for small businesses is the Businessowners Policy (BOP).

The BOP combines coverage for all major property and liability insurance risks as well as many additional coverages into one package policy suitable for most small businesses. The term “BOP” specifically refers to insurance policy language developed (and revised as needed) by experts at ISO. ISO provides sample insur-ance policy language, research and a variety of other products to insurance companies.

The BOP includes business income insurance, some-times called business interruption insurance. This com-

pensates a business owner for income lost following a disaster. Disasters typically disrupt operations and may force a business to vacate its premises. Business income insurance also covers the extra expense that may be in-curred if a business must operate out of a temporary location.

To cover specific risks associated with a business, a va-riety of additional coverages may be added to the basic BOP. For example, if a business has an outdoor sign, the BOP doesn’t cover it unless coverage is specifically added for an additional premium. If a business relies on electronic commerce, the owner can add coverage for lost income and extra expenses in the event the ability of the business to conduct e-commerce is slowed down or stopped due to a computer virus or hacker.

small Business insurance basics

Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. Factors insurers consider include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on those factors plus business location, financial sta-bility, building construction, security features and fire hazards.

Major coveragesMost small businesses need to purchase at least the fol-lowing four types of insurance.

1. ProPertY InsuranceProperty insurance compensates a business if the prop-erty used in the business is lost or damaged as the re-sult of various types of common perils, such as fire or theft. Property insurance covers not just a building or structure but also what insurers refer to as personal property, meaning office furnishings, inventory, raw materials, machinery, computers and other items vi-tal to a business’s operations. Depending on the type of policy, property insurance may include coverage for equipment breakdown, removal of debris after a fire or other destructive event, some types of water damage and other losses.

2. LIaBILItY InsuranceAny enterprise can be sued. Customers may claim that the business caused them harm as the result of, for ex-ample, a defective product, an error in a service or dis-regard for another person’s property. Or a claimant may allege that the business created a hazardous environ-ment. Liability insurance pays damages for which the business is found liable, up to the policy limits, as well as attorneys’ fees and other legal defense expenses. It also pays the medical bills of any people injured by, or on the premises of, the business.

3. BusIness auto InsuranceA business auto policy provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which the business is legally liable, up to the policy limits.

4. workers coMPensatIon InsuranceIn all states but Texas an employer must have work-

ers compensation insurance when there are more than a certain number of employees, varying from three to five, depending on the state. Workers comp insurance, as this coverage is generally called, pays for medical care and replaces a portion of lost wages for an em-ployee who is injured in the course of employment, re-gardless of who was at fault for the injury.

When a worker dies as a result of injuries sustained while working, the insurance provides compensation to the employee’s family. An extremely small business, such as one operated by one or two people out of a home, may not need workers compensation insurance. But it often needs more property and liability insur-ance than is provided in a typical homeowners policy.

otHer tYPes oF BusIness coverages

1. errors anD oMIssIons Insurance /ProFessIonaL LIaBILItYSome businesses involve services such as giving advice, making recommendations, designing things, provid-ing physical care or representing the needs of others, which can lead to being sued by customers, clients or patients claiming that the business’s failure to perform a job properly has injured them. Errors and omissions or professional liability insurance covers these situa-tions. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also provides legal defense costs, even when there has been no wrongdoing.

2. eMPLoYMent PractIces LIaBILItY InsuranceEmployment practices liability insurance covers (up to the policy limits) damages for which an employer is legally liable such as violating an employee’s civil or other legal rights. In addition to paying a judgment for which the insured is liable, it also provides legal de-fense costs, which can be substantial even when there has been no wrongdoing.

3. DIrectors anD oFFIcers LIaBILItY InsuranceDirectors and officers liability insurance protects direc-tors and officers of corporations or not-for-profit or-ganizations if there is a lawsuit claiming they managed the business or organization without proper regard for

the rights of others. The policy will pay any judgment for which the insured is legally liable, up to the poli-cy limit. It also provides for legal defense costs, even where there has been no wrongdoing.

4. keY eMPLoYee InsuranceLife or disability income insurance can compensate a business when certain key employees die or become disabled. These coverages cushion some of the adverse financial impact that results from losing a key employ-ee’s participation.

5. uMBreLLa PoLIcIesAs the name implies, an umbrella liability policy pro-

vides coverage over and above a business’s other liabil-ity coverages. It is designed to protect against unusually high losses. It provides protection when the policy lim-its of one of the underlying policies have been used up.

For a typical business, the umbrella policy would pro-vide protection beyond the general liability and auto liability policies. If a company has employment prac-tices liability insurance, directors and officers liability, or other types of liability insurance, the umbrella could provide protection beyond those policy limits as well.

If you are ever sued, your standard homeowners or auto policy will provide you with some liability cov-

erage, paying for judgements against you and your at-torney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal um-brella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

shoulD i Purchase an uMbrella liability policy?

For about $150 to $300 per year you can buy a $1 mil-lion personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into ef-fect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your ho-meowners policy before selling you an umbrella liabil-ity policy for $1 million of additional coverage.

Your auto policy may include six coverages. Each coverage is priced separately.

1. BoDILY InjurY LIaBILItYThis coverage applies to injuries that you, the desig-nated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely con-sider buying more than the state-required minimum to protect assets such as your home and savings.

2. MeDIcaL PaYMents or PersonaL InjurY ProtectIon (PIP)This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. ProPertY DaMage LIaBILItYThis coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

4. coLLIsIonThis coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes.

Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible.

If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.

5. coMPreHensIveThis coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some compa-nies offer glass coverage with or without a deductible.

6. unInsureD anD unDerInsureD MotorIst coverageThis coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

WhaT is covereD By a basic auto policy?

What you need to knoWMedicare is different this year because of health care reform, and if you’re not aware of how this important program has changed, pay attention.

Be aware of deductibles, co-insurance, out-of-pocket limits and prescription drug costsIf you’re new to Medicare it’s important to know that both parts of Original Medicare (A and B) have deductibles. And, the Part A deductibles are not tied to a calendar year. Instead, they’re tied to a 90-day benefit period, with some exceptions.

The Medicare Part B benefit also includes coinsur-ance after you meet your deductible. With coinsurance, Medicare pays a percentage of each bill and you pay the rest (between 20 and 45 percent, depending on the service), after applicable premiums and deductibles.

People concerned about some of the gaps in origi-nal Medicare have the option to enroll in insurance products regulated by the government but provided by private companies. These are products designed specifi-cally to fill some of the different gaps in Medicare.

THey IncLude:• Medicare Part D stand-alone prescription drug

plans, which cover the cost of most prescription drugs.

• Medicare Supplement plans, which cover portions of the deductibles, coinsurance and out-of-pocket costs not covered by original Medicare.

• Medicare Advantage plans, which bundle together the Part D drug benefit with some additional coverage for deductibles, coinsurance and out-of-pocket costs.

Each type of supplemental coverage has different guidelines for when you can enroll, change and cancel your coverage. There are new Medicare annual enroll-ment dates. Most beneficiaries can change a Medicare Advantage plan or stand-alone Medicare prescription

drug plan once per year during Medicare’s annual enrollment period (AEP). The dates for AEP run from October 15 to December 7 in 2011.

Medicare Supplement plans have an initial enrollment period, which occurs in the first 6 months after you enroll in Medicare Part B and are 65 or older. During that time, you can enroll in a Medicare Supplement plan and not be declined. But, if you try to enroll after the initial enrollment period, your application could be declined based on a review of your medical history.

But, if you want to switch from a Supplement plan to an Advantage plan, the AEP is a good time to make that switch.

It’s critical to compare drug coverage every yearPlanPrescriber.com, an internet company that allows people to compare Medicare plans side-by-side, looked at 25,000 user sessions on its website between Novem-ber 15, 2010 and December 31, 2010. The site found that, on average, a user could save over $500 per year — over $40 per month — by reviewing their options and changing their prescription drug plan.

geT STar power In 2012The Affordable Care Act requires a star rating system to be used for Medicare Advantage plans, beginning in 2012. Plans get a rating of 1 to 5, with a 5 star rating equating to an “Excellent Performance,” and a 1 star rating equating to a “Poor Performance.”

If you’re lucky enough to have access to a 5 star plan, consider it as an option for your coverage. One benefit of a 5 star plan is that you can enroll at any time, even outside of Medicare’s annual enrollment period.

A great place to review and research the different Medicare products available in your zip code is www.planprescriber.com.

Medicare 2012

Safety Tips for Students Abroad

The allure of traveling abroad to study and experi-ence other cultures continues to grow for teens

across the country. U.S. student participation in study abroad programs has more than doubled over the last decade, according to the Institute of International Education. While traveling abroad is an exciting op-portunity for students, parents often have concerns over safety.

“As travel safety experts with nearly 50 years of ex-perience, we work diligently to ensure the safety of every student and leader in every program,” said Mike Bowers, Senior Health and Safety Director for People to People Ambassador Programs. “We understand the concerns and we are committed to providing a safe and enjoyable educational experience for all program participants.”

Bowers has reviewed years of travel data to understand the most common safety issues as a leader in travel safety. Learn more at www.peopletopeople.com/safety.

pack coMMon SenSe• Ask yourself — would I do this at home? If the

answer is no, rethink your actions.• Get some rest. You can have a good time without

staying out too late — the more rested you are, the more likely you are to be aware of and safe in your surroundings.

• Always travel with a buddy — traveling alone can make you a mark for thieves.

Scope ouT your SurroundIngS• Be knowledgeable about your destination. Visit

Centers for Disease Control travel websites and other online resources before you travel. Check out hotels and inns before you decide to stay there.

• Go ahead, travel like a native, but be cautious when using public transportation. Crowds make it easier for pick-pocketers. Always keep your money and identification on your person in multiple loca-tions.

• If you see the same person three times in different locations it could mean you are being targeted, and you should find a safer place.

Leave a Money TraIL• Use a prepaid bank card which allows loved ones

back home to know where you are, and make sure

they have access to the account. The U.S. Depart-ment of State indicates it is a good way to find people while traveling.

• Make copies of passports and credit cards, etc. If lost or stolen, account numbers can be easily located and reported.

Leave THe bLIng beHInd• Petty criminals look for easy targets in crowds and

a “blinged out” tourist is an easy target.• Make an effort to blend in and use your prior

research to understand the country’s style and culture.

STay connecTed• Contact home on a scheduled basis to let your

loved ones know you are safe. If you miss a sched-uled time, your contacts will know to start looking for you.

• Use Skype, text messaging or a GPS-equipped phone that allows people back home to track your trip and ensure your safety.

TraveL SMarTThe Department of State has set up the Smart Trav-eler Enrollment Program (STEP), a free service that lets you submit information about your trip so that the Department can assist you in an emergency. It makes it easier for U.S. embassies and consulates around the world to contact you and your loved ones during an emergency. Learn more at www.student-sabroad.state.gov.

If you feel irritable, have a hard time concentrating, have low energy or a hard time sleeping, you could

be showing signs of stress. In fact, it seems that most Americans are feeling stress these days.

The American Psychological Association’s (APA) 2010 Stress in America survey disclosed that stress is tak-ing a toll on physical health, as well as the emotional well-being of individuals and families. The majority of Americans live with moderate to high levels of stress but have a hard time making changes to cope with it. The survey also found that:

• Two-fifths of surveyed adults reported overeating or eating unhealthy foods because of stress.

• Nearly one-third of respondents said they skipped a meal because of stress.

• More than four in ten said they had lain awake at night.

• The most common physical symptoms of stress reported were irritability (45 percent), fatigue (41 percent) and lack of energy or motivation (38 per-cent).

If you’re feeling stressed, take heart. There are some things you can do to manage your stress.

The APA recommends that you:

underSTand How you STreSSHow are your behaviors or thoughts different under stress? Do you have a harder time concentrating or making decisions? Do you lash out in anger? Or do you experience headaches, muscle aches or lack of energy?

IdenTIFy SourceS oF STreSSWhat triggers stressful feelings? Are these stress trig-gers related to family, health, financial decisions, work, or something else?

FInd HeaLTHy wayS To Manage STreSSParticipate in stress-reducing activities like exercising, meditating, yoga, or talking things over with friends or family. Reaching out for support from others is another important part of stress management.

It’s also important to take care of yourself with regular sleep, healthy eating and plenty of water.

These are longer term solutions. But if time is at a minimum and you need some quick, safe and effective stress relief, you may want to try C3* for Stress, an all-natural drink mix of botanicals, vitamins and minerals that helps you relieve symptoms of stress so you can stay calm, cool and connected to your natural energy. Stimulant- and sedative-free, C3 minimizes the nega-tive effects of stress, allowing you to be more produc-tive, whether on a tight deadline, facing an overwhelm-ing to-do list or experiencing a hectic situation. For new customers, a free sample of the work week five-pack is available at www.C3forStress.com. Just pay for shipping and handling.

The warning signs of stress should not be taken lightly, so listen to what your body is telling you. By recogniz-ing the triggers and understanding how you respond to it, you can healthfully manage and take measures to avoid the long-term problems associated with stress.

sTress Busters